Aria purchases a coffee cup from her local gas station for $5.00 that can be refilled at any time for $0.50. Economists would say that the $5.00 she spent on the cup is:

Question

Quizplus · Accepted Answer

The $5.00 spent on the cup is a sunk cost because it is a one-time expense that cannot be recovered or refunded. The refill cost of $0.50 is a marginal cost because it is the additional cost of each refill after the initial purchase. The $5.00 could also be considered an opportunity cost if Aria had other potential uses for that money, but in this scenario, it is most accurately a sunk cost.

Aria Purchases a Coffee Cup from Her Local Gas Station